New oil tanker booked by Kinder Morgan

The expansion of a contract with General Dynamics for a 300,000-barrel oil tanker exemplifies a commitment to U.S. marine transport of oil, Kinder Morgan said.

Kinder Morgan said it expanded its contract with General Dynamics for the design and construction of a tanker scheduled for second quarter 2017 delivery.

"We are delighted to build an additional tanker, supported by a long-term charter with a major shipper, which clearly demonstrates Kinder Morgan's ongoing commitment to marine transportation of crude oil, condensate and refined products in the United States domestic trade," Rob Kurz, president of a petroleum tanker subsidiary at the company, said in a statement Monday.

The tanker will be constructed at a shipyard in San Diego, which meets the requirements of the Jones Act of 1920 requiring ships transporting cargo between U.S. ports to be built at U.S. shipyards.

Kinder said the new tanker will join four other tankers under construction at General Dynamic's shipyard in San Diego.

"There continues to be increasing demand for waterborne transportation to move petroleum products," Kurz said.